Home | About Us | Contact Us
Home / Finance Approved? / Income Protection
 

Income Protection

Insuring your house, furniture, contents and car is almost second nature to the majority of Australians. Yet all too often they fail to adequately protect what is probably their most important asset, their ability to produce an income. If you lost your capacity to work due to illness or an accident, would you have the means to continue to fund your daily life and meet any loan repayments?

The Risk is Real

There are over 2 million people of working age in Australia with a disability impacting on their ability to work. That's 10% of the population.

Every working Australian has a one in three chance of becoming disabled for more than 3 months before reaching retirement age.*

It is a common myth that "workers compensation will cover me"

Workers compensation will only cover you for accidents or injuries that occur during working hours or for an illness that is a direct result of your employment.

Most people have 2 remuneration models....they just don't know it 

Option 1 - Do nothing. When your working you get 100% of your income and when your disabled and can't work, other than sick leave, you get 0% of your income.

Option 2 - The alternative. When you are disabled, after you waiting period you get paid up to 75% of your normal income. This is done through income replacement insurance which is tax deductable. Your premium and benefits will be impacted by your occupation, health, age, gender, waiting period you choose and benefit period you choose.

How does it work in practice?

John Brown is 35, with a salary of $48,000p.a. and he is a non smoker. He requires a 30 day waiting period and benefits of 75% of his income up until age 65.

Occupation Monthly Premium Yearly Premium Yearly cost as % of income
Accountant $53.31 $592.92 1.2%
Teacher $67 $747.88 1.6%
Auto Electrician $121.79 $1367.68 2.8%

The above premium costs are gross rates. As the premium is tax deductable, the real cost is actually lower.^

To find out more about your insurance options click here.

 

*Statistics taken from the report Australia's Welfare 2005, Australian Institute of Health and Welfare

^Premium rates based on Zurich's Income replacement product as at April 2007 and subject to change.

 

 
The 7 steps to buying your first home